The trade war has had an impact on the farming community, but the depth and extent haven’t been fully determined. Earlier this year, many producers reported challenges in getting some of the fertilizers they needed for their operations.
As the trade war with China has continued, that’s really impacted farmers in the Midwest growing soybeans. For Northwest wheat growers, it’s been the price, rather than the tariffs, that has impacted sales the most.
Casey Chumrau is the Executive Director of the Washington Grain Commission,
“For the last 24 months, we’ve had really advantageous prices for customers. Of course, the prices are much lower than we would like to see as farmers, but we have been kind of saying that the wheat is on sale, and our customers have been taking advantage of that. Our total commercial sales for the last marketing year, which ended at the end of May, were way up both for overall U.S. wheat and then for soft white that we grow here in the Pacific Northwest.”
Chumrau added that with these low prices, other countries are using more wheat and purchasing greater quantities from the United States to help with the trade balance. When it comes to trade going forward, Chumrau says Southeast Asia continues to hold great potential for Northwest wheat growers.
“We already have several of our top markets down there. Of course, the Philippines is number one for Soft White, but we also have Indonesia and Thailand. Vietnam is growing. All of those destinations also have positive demographics. Their populations continue to grow. They have a growing middle class and a younger population than some of our traditional destinations, like Japan and Korea. So, we continue to focus on those markets.”
Chumrau says the Grain Commission continues to look at ways to get growers involved in trade efforts, whether that’s on a trade mission or hosting buyers when they visit the region.